April 1st, 2014
10:57 AM ET

GM Recalls Reach Nearly 7 Million

General Motors has recalled nearly 7 million vehicles so far this year, almost as many cars and trucks as it recalled in the United States over the last four years combined.

The 7 million figure includes recalls in Canada and Mexico as well as cars and trucks exported outside of North America that needed to be recalled and fixed.

The latest was on Monday when GM recalled 1.3 million vehicles, mostly in the U.S., to fix a problem in power steering.

The company said Monday it will take a $750 million charge against earnings in the first three months of the year to cover the cost of all the repairs, up from its earlier estimate of $300 million.

But the company is now getting grilled because it took 10 years between the time it discovered a problem with an ignition switch and its decision to recall 2.6 million of the small cars earlier this year. That flawed switch, which could shut off the car while driving and disable the airbag, power steering and anti-lock brakes, has been tied to at least 13 deaths.

GM CEO Mary Barra met with some of the families of people killed in those cars at the company's Washington, D.C., offices Monday night, the company confirmed.

Laura Christian, the birth mother of Amber Marie Rose, says the CEO can apologize but  it's "too little, too late."

Her daughter was 16 when she died in a car accident  as her ignition was off and her airbags were disabled when her 2005 Chevy Cobalt slammed into a tree.

Christian and Terry DiBattista, Rose's adoptive mother, spoke to CNN's Chris Cuomo, demanding changes from GM as Barra faces two days of testimony before House and Senate panels Tuesday and Wednesday.



Posted by
Filed under: Interview • News • Videos • World News
November 13th, 2013
09:21 AM ET

U.S. Air and American Airlines Reach Deal With Justice to Allow Merger

The Justice Department has reached a settlement with American Airlines and US Airways that requires the airlines to sell facilities at seven airports in order to complete their planned merger.

The deal announced Tuesday allows low-cost airlines to increase their presence at many of the nation's largest airports.

CNNi Business Correspondent Richard Quest explains it in depth. (SEE VIDEO BELOW)

Under the agreement, American and US Airways will sell to low-cost carriers 104 slots at Washington's Reagan National, 34 slots at New York's LaGuardia, and rights to gates at Boston's Logan, Chicago's O'Hare, Dallas' Love Field, Los Angeles and Miami airports.

In August, the Justice Department filed an antitrust suit against the airlines, arguing that the combination would reduce choices for customers by giving the combined carrier a stranglehold at certain major airports. At Reagan National, for instance, the two airlines would have controlled 69% of the take-off and landing slots.

"This agreement has the potential to shift the landscape of the airline industry," said Attorney General Eric Holder. "By guaranteeing a bigger foothold for low-cost carriers at key U.S. airports, this settlement ensures airline passengers will see more competition on nonstop and connecting routes throughout the country."

The court is likely to approve the deal, reports CNN's Rene Marsh. But fliers will not see changes for many months. Other than the  cosmetic changes to come, the integration of the two airlines' computer systems could be a challenge.

Experts say you should be fine if you already have travel booked on either airline because merging the systems will take time, and frequent flyer miles are safe.

With one less major airline, however, royalty programs could become less generous, Marsh says. "Obviously that would be because of lack of competition. But they could start requiring more miles for a flight."

Posted by ,
Filed under: News • Videos • World News